TROW · NMS · Financial Services
T. Rowe Price Group, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 121.22
Market price
USD 105.85
Implied upside
+14.5%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 19.7%
- Payout
- 56%
- Cost of equity
- 10.39%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 10.9bn | USD 11.7bn | USD 12.6bn | USD 13.5bn | USD 14.3bn | USD 15.1bn | USD 15.8bn | USD 16.5bn | USD 17.1bn | USD 17.7bn |
| Return on equity | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% | 19.7% |
| Excess return | USD 1.0bn | USD 1.1bn | USD 1.2bn | USD 1.3bn | USD 1.3bn | USD 1.4bn | USD 1.5bn | USD 1.5bn | USD 1.6bn | USD 1.7bn |
| Present value | USD 919.4m | USD 899.8m | USD 875.7m | USD 847.3m | USD 815.1m | USD 779.6m | USD 741.3m | USD 700.7m | USD 658.5m | USD 615.1m |
| Book equity | USD 10.9bn |
| Present value of excess returns | USD 7.9bn |
| Terminal, growing at 2.50% | USD 8.0bn |
| Equity value | USD 26.7bn |
| Per share | USD 121.22 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.299 | Reported 1.446, pulled toward 1.0 (Blume) |
| Cost of equity | 10.39% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.